Case 3 (Due Week 5).

LTO: Vehicle Registration Renewal

Henry Dilay, the manager of a branch office of the Land Transportation Office is being pressured
by his regional director to increase productivity, reduce cost and accommodate demand in the vehicle
registration renewal. He found out that presently, there are 6 operations involved in the renewal process.
Operation 1 must be performed first before any other operation, while Operations 5 and 6 must be the
fifth and the last, respectively. All others can be done in any order. The operations and the corresponding
average times to perform operation on one renewal, the number of operators performing each and each
operators hourly rates are:

Operation Times(min.) No.of Men HourlyRate

1. Review renewal application for corrections 10 1 65
2. Inspect vehicle 30 2 75
3. Check file for violations and restrictions 20 1 65
4. Prepare registration form 10 1 60
5. Approval and signature 10 1 100
6. Processing of payment and releasing 10 1 80

Operation 5 has to be done by Mr. Dilay, and Operation 6 by the cashier. The layout of the office
where these operations are performed is shown in Figure 1.

The hourly demand for renewal for the past 5 years are: 1.5, 2, 2.5, 3, 3.5

Requirement: Draw the precedence diagram with partitioning of the present system

Questions to answer:
1. What are the a) hourly capacity b)hourly manpower productivity (in manhours) c)hourly manpower
productivity (in pesos) d) % utilization of the branch office?
2. Which of the ff. alternatives should be adopted to accommodate the hourly demand for next year?
Alt.1 Increase number of inspectors of vehicles by 100%
Alt 2.Increase number of Operators assigned to 3 by 100%
Evaluate using the metrics in #1 using the attached evaluation form. (pls.see Form1)
3. Suggest a line balancing alternative that will be superior to the above. Assess accdg. to the said
metrics.
Form 1 Capacity Productivity % Utilization
per hour per manhour per peso
Present
Alt.1
Alt.2
Your Own

4. What needs to be done to the layout as a result of your recommendation in #3?

5. Mr. Dilao noticed that within the week, 50% of the renewals are done on Friday. What should he do
regarding this seasonality? (Name at least 2 alternatives and evaluate)
6. Suggest 5 improvements on each of the ff. a) Input b) Output c)Process d) Work Environment
 Records Room
Layout of the office (scale: 1in:1m) Prep by RVA 07/07/07

Branch Mgr. Sliding door

Wooden wall Operator4

table
Operator1 Inspector Operator3 Operator6
rotating chair

Metal and glass partition where clients transact

Waiting area of car owners/representatives

Metal-glass doors

Concrete wall
Parking space for vehicles